Posts from November 2011

November 26, 2011

Surprisingly, Estonian pension funds that operate second-pillar pension schemes have invested not only in conservative German and Finnish government bonds, but also, for instance, in Italian government bonds.

In fact, Italian government bonds are the third most popular government bonds held by Estonia’s largest pension funds.Other questionable investments made by Estonian pension funds include Hungarian, Romanian, South African and Turkish government bonds.

A survey shows that Estonian pension funds have 33 million euros of French government bonds in market value as of end of October.

Second-largest in the portfolio among government bonds are German government bonds that are worth 22 million euros.Italian government bonds make up 19 million euros in value, followed by Polish government bonds (18 million euros) and Lithuanian government bonds (16 million).

TALLINN - The state budget for 2013 has to include a wage increase for teachers, Estonian Education Minister Jaak Aaviksoo said while speaking at the Riigikogu Finance Committee, LETA/Postimees cited national television.

“The 2013 state budget will certainly not cope without a wage increase for teachers,” assured Aaviksoo.

He said that the wage increase should be considerable, but he refused to mention how big exactly.

“How big the result is going to be depends on many aspects, including Greece,” he said.

November 24, 2011

Flights to Vienna will start on 25 March with six flights a week and to Hannover on 2 April with six flights a week.

”Vienna is a major transit centre enabling us to cover the Balkan and Southern Europe regions in the future. Austria, which is known for its attractive travel and tourism environments, is also worth of visiting for skiing and city breaks,” explained Rauno Parras, Estonian Air Commercial Manager, reasons behind the decisions.

”Another new destination – Hannover – has geographically very good location residing in the middle of Germany. Also, Deutsche Bahn’s biggest centre is located in Hannover. Good connections with Deutsche Bahn from Hannover, customers can get to major cities in Germany and surrounding countries within 2 hour transit times. Tickets to Deutsche Bahn's attractive rail network can be bought from biggest travel agents together with Estonian Air tickets,” noted Rauno Parras.

Initially the nationally-owned port was supposed to pay the state 39.4 million euros in dividends, which is an all-time high for the company. The amount, however, was reduced to 20 million euros following a request by the port to do so.

According to Prime Minister Andrus Ansip, the Cabinet decided to comply with the request, because the company will need a significant amount of additional funding to keep shipping lanes open in the nation's territorial waters this winter.

So far the job has been done by Estonia's one and only 1960s-built icebreaker vessel Tarmo, with additional services rented from other icebreakers.

This year, however, the port has faced difficulties in increasing its icebreaking capacity, so additional expenses are expected, said Ansip.

"General rules have to be followed all over Europe. You need a balanced budget," Estonia's Finance Minister Jurgen Ligi said at the Baltic Economic Forum in Riga, capital of neighbouring Latvia. "Europe tends to think a three percent deficit is good and we can live in deficit all the time," Ligi underlined. "Crisis management hasn't convinced the markets so far," he said. "We need balanced or surplus budgets for everyone."

Estonia has long held to fiscal policies set down in the 1992 Maastricht Treaty that created EU economic and monetary union -- repeatedly breached by a swathe of euro zone members. The treaty requires countries to keep their public deficits -- the shortfall between state spending and revenue -- below three percent of gross domestic product but the vast majority of the EU's 27 members have breached that repeatedly. Estonia, in contrast, posted surpluses from 2002 to 2007 as its economy boomed.

It was hit hard by the global crisis, plunging into a double-digit recession in 2009, but is enjoying a robust recovery. Estonia's centre-right government, which held to conservative fiscal policies even before the slump, slashed public spending to confront the crisis and maintain the drive to adopt the euro. The 2009 deficit was 1.7 percent in 2009. Estonia posted a 0.1 percent surplus in 2010, and forecasts a 0.2 percent surplus this year. Revived spending in 2012 is expected to bring a 2.1 percent deficit, however.

Brussels has demanded sweeping powers to override faulted national budgets. "Countries should not be nervous about macroeconomic surveillance. We will get clear messages about how to resolve internal and external imbalances," Ligi said.

Local sources in Estonia have suggested to Evertiq that French EMS-provider Éolane is interested in buying Elcoteq's Tallinn facility.

Evertiq has tried to reach Elcoteq SE's bankruptcy administrator - Mr. Yann Baden from Baden & Baden - Avocats à la Cour - for a statement on the subject. However, calls and emails have not been returned.

Evertiq has also asked EMS-provider Éolane for comment but they are yet to provide an official statement on the matter.

Jan Kotka, managing director at Elcoteq Tallinn, has been quoted in numerous regional publications over the past few weeks saying "the unit is profitable, continues to fulfil customers' orders while waiting to be sold as an asset by receivers. Orders would last for 12 months ahead."

On November 23, thieves walked away with 370 meters of power cable from the area next to the town's ruined community hall. The estimated damage to public infrastructure is 1,200 euros, the East Prefecture of the Police and Border Guard reported.

The theft comes as ironic after a September statement from Sergei Andrejev, chief of the Narva police department, which covers Narva-Jõesuu, that "citizens should protect their property better, as a police officer cannot be stationed in front of every house."

Andrejev told regional newspaper Põhjarannik that a police patrol team is stationed in the town of 3,000 permanent residents only on hot summer days when the beaches are thronged.

FC Amkar Perm midfielder Konstantin Vassiljev has been named the nation's player of the year by the Estonian Football Association (EJL) for a second year running.

Vassiljev, 27, who scored six times in UEFA EURO 2012 qualifying, including Estonia's only goal in the 5-1 aggregate play-off defeat by the Republic of Ireland, won 89 points in a poll of Estonian football journalists and EJL representatives. AZ Alkmaar defender Ragnar Klavan took second place (40 points) while Wisła Kraków goalkeeper Sergei Pareiko (33) came in third. Vassiljev has registered 15 goals in 49 internationals.

UEFA President Michel Platini announced the winner via video link, and the former France playmaker revealed his admiration for Vassiljev: "The award goes to the attacking midfielder and free-kick specialist whose performances I follow especially closely. My congratulations, Konstantin Vassiljev!"

"To be the best player for a second successive year is a great achievement," said Vassiljev, who moved to Russian side Amkar in August from Slovenia's FC Koper. "This year the national team played even better than last year. Let's hope the future brings even more positive emotions and results."

Vassiljev may have taken the mantle from Estonia captain Raio Piiroja but he has some way to go to better Piiroja's four consecutive crowns between 2006 and 2009. Further ahead is six-time winner Mart Poom, the former Derby County FC and Sunderland AFC custodian, who is now the national team's goalkeeping coach and FC Flora Tallinn's sporting director.

The women's player of the year prize went to 21-year-old Põlva FC Lootos attacking midfielder Signy Aarna who scored 22 goals in 22 league games.

During the three-day event, dance enthusiasts can indulge in numerous performances by renowned salsa dancers such as Juan Matos and Amneris Martinez from Italy. Troy Anthony and Jorjet Alcocer, recognized Latin dancers in the US will also be participating in the event.

According to the organizers, visitors will also have the opportunity to take part in workshops and training sessions where the dancers will teach styles such as salsa, bachata, kizomba and afro-cuban jazz.

Both workshops and performances will be held at various venues in Tallinn over the weekend.

On November 27, the festival's program will culminate in a dance-until-you-drop party at the Cubanita Live Cafe, where all are welcome to show off their Latin dance moves.

The state budget for 2013 has to include a wage increase for teachers, Estonian education minister Jaak Aaviksoo said while speaking in the Riigikogu finance committee, LETA/Postimees cited national television.

“We are working in the name of 2013 and the budget that will determine the year after the next will certainly not cope without a wage increase for teachers,” said Aaviksoo.

He said that the wage increase should be considerable but was unwilling to say how big exactly.

“It depends on many aspects, even Greece, how big the result will be,” he said.

Starting this Monday, November 21, the Estonian state will prescribe fines to the owners of cars with diplomatic licence plates that exceed the speed limit as recorded by one of Estonia’s highway speed cameras, LETA/Postimees Online reports.

So far state officials said that it is not possible to issue speeding tickets regarding cars with diplomatic licence planes that exceed the speed limit.

Now a solution was found and instead of using the electronic warning proceedings information system, the speeding ticket will be mailed by ordinary mail, interior ministry spokeswoman Karin Kangro said. Foreign representations will be informed of the incident and in case a person with diplomatic immunity was driving the vehicle, it is asked if misdemeanour proceedings can be applied.

Since Monday no speed cameras have recorded speeding of cars with diplomatic licence plates. So far, around 20 such cases had been recorded each month.

Because the state is planning to inject 30 million euros into the airline over the next two years, Parts said that SAS Group, which is a 10-percent owner in Estonia's flagship airline, could make a proportional contribution, reported e24.ee. He was, however, unwilling to go into details saying the negotiations were still going on.

SAS Vice-President Sture Stolen however said that it is unlikely that his company would be opening its wallet anytime soon.

"We have a good and important partnership with them, but it is not our strategy to be part owners in Baltic airlines," he said.

An alternative option is that SAS could write off part of the loans it has made to Estonian Air, whose debts totaled 7.3 million euros at the end of last year. Stolen said he did not rule out that possibility.

SAS acquired a 49 percent stake in the company from Maersk Air in 2003, but reached a deal with the government last year to sell the bulk of its holdings. The government has an option to buy SAS's remaining 10 percent until 2014.

Taavi Koovit, three-time European champion in bodybuilding, won the World Men's Classic Bodybuilding Championship held in Tallinn from November 19 to 21.

Koovit received the title in the taller-than-180-centimeters class, reported sport.err.ee.

Thirty athletes made it to the finals, of whom four were Estonian.

In addition, the final results of doping tests carried out at major international competitions in 2009 and 2010 were revealed at this year's championship, improving some of the past results of Estonian bodybuilders.

For example, Koovit's silver medal turned gold, while bodybuilder Imre Vähi jumped from fourth to third position in the 2010 European Championship rankings. Ott Kiivikas was awarded a silver medal in bodybuilding at the 2009 World Games held in Taiwan, where he initially had placed fourth.

The Fitness and Bodyfitness Open Cup was also held together with the men’s championship.

During the program, running from November 23 through December 5, nine feature-length Estonian fiction films will be screened, six of which have been named by the Film Critics Association as the nation's top feature films of the past 100 years.

All movies will be screened at the Cinematheque Française in Paris, the largest film archive in the world.

The program, titled Les 100 ans du cinema estonien, will be opened by an Estonian silent movie classic, the War-of-Independence-themed "Young Eagles" by Theodor Luts, which dates back to 1927.

In addition to full features, movie buffs will be treated to a number of short fiction and documentary films produced in Estonia and can get acquainted with the works of the country's animation filmmakers.

November 21, 2011

SAS AB, the Nordic region’s biggest airline, is in talks with the Estonian government on whether the company will participate in a capital increase for the Estonia-based national airline Estonian Air, Eesti Paeevaleht was quoted by Bloomberg.

The Estonian carrier should be able to negotiate "much better" terms with Canada's Bombardier Inc. to buy new aircraft than in a previous transaction two years ago, the Tallinn-based newspaper Paevaleht reported referring to Tero Taskila, Estonian Air's chief executive officer, writes LETA.

As reported, Estonian government said earlier in November it would inject 30 million euros into state-owned Estonian Air to renew its fleet in a drive to bolster business.

The government said that if Estonian Air's shake-up helps boost numbers in the future, extra tourism revenues could hit 60 million euros a year.

The government has held a 90-percent stake in Estonian Air since June 2010, when it struck a deal with Scandinavian carrier SAS, which now holds 10%.

Trial in the criminal case concerning unauthorised clinical trials on humans started in the Tartu County Court on Monday, writes LETA/National Broadcasting.

Charged with the crimes are well-known medical doctors Andres Sell and Lembit Allikmets.

According to charges, in 2006, 64 orthopaedic surgeries were carried out in the outpatient surgery centre Medex and in the Tartu University Hospital, using the anaesthetic drug for which there was no authorisation by the State Agency of Medicines and whereby patients were also not informed in accordance to the regulations.

The prosecutor has stated that Sell incited Allikmets to forge a permit for the trials and the latter did so.

If convicted in carrying out illegal clinical trials on humans, the court may sentence the accused with a monetary fine or a prison term of up to three years.

The Tartu County Court ruled on Monday that the trial would not be open to the public. The Southern Circuit Prosecutor Kristiina Laas requested that the sitting be declared closed in order to protect the private lives of the victims as the case would reveal the data on their health records which are considered delicate personal data.

Pedaru is currently ranked at number 10 on models.com’s prestigious list of Top 50 Models. Her breakthrough came in 2008 when she was booked to walk for New York Fashion Week. She ended up being booked for 43 shows that season and walked for Marc Jacobs, Donna Karan and Dries Van Noten.